In a latest development, one of India’s biggest online marketplace Snapdeal is apparently readying itself for a merger with rival Flipkart in a move spearheaded by the latter’s largest investor Softbank, as reported by Business Standard. The decision comes after several months of negotiations and hectic discussions. If the deal comes through, which is reported to take place during the next three weeks, it could potentially value Snapdeal at approximately $1 billion.
People privy to the developments told Business Standard that after the holding company, Jasper Infotech Limited, board of directors failed to reach a consensus on the reported sale, a fresh proposal is being considered albeit with changes by Softbank. It will be sent to the board in the coming few days, says the report.
Two of Snapdeal’s early stage investors Nexus Venture Partners and Kalaari Capital, according to the report, want Softbank to take into account while doing valuation not only the e-commerce company but two of its unites, namely Vulcan Express and Unicommerce, with a higher valuation.
The Business Standard report, citing people privy to the development, states that the two early stage investors in Snapdeal want Vulcan Express Private Limited and Unicommerce to be valued separately and not as a part of the Snapdeal’s valuation deal because both are ‘either profit making or would about to do so”.